Question: Jesper Parnevik borrowed $70,000 on March 1, 2006. This amount plus accrued interest at 12% compounded semiannually is to be repaid March 1, 2016. To

Jesper Parnevik borrowed $70,000 on March 1, 2006. This amount plus accrued interest at 12% compounded semiannually is to be repaid March 1, 2016. To retire this debt, Jesper plans to contribute to a debt retirement fund five equal amounts starting on March 1, 2011, and for the next 4 years. The fund is expected to earn 10% per annum.

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How much must be contributed each year by Jesper Parnevik to provide a fund sufficient to retire the debt on March 1, 2016?

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